Exam2acct - Chapter2 17:49:00 Inaccordingtheis

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Chapter 2 26/09/2007 17:49:00 Reporting Job Cost Data The cost of goods manufactured schedules now shows manufacturing  overhead applied rather than actual overhead costs Applied over head is added to direct materials and direct labe to determine  total manufacturing costs In according the issuance of raw materials in a job order cost system, it would be  incorrect to: Debit finished Goods Inventory Under or Overapplied Overhead debit  balance in manufacturing overhead means that overhead is  underapplied o Overhead assigned to work in process is less than overhead incurred credit  balance in manufacturing overhead means that overhead is  overapplied o Overhead assigned to work in process is greater than overhead  incurred Any year-end balance in Manufacturing Overhead is eliminated by adjusting  cost of goods sold o Under overhead is debited to CGS o Over overhead is credited to CGS
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Chapter 3 26/09/2007 17:49:00 Nature of Process Cost Systems Uses of Process cost systems o Used to apply costs to similar products that are mass produced in a  continuous fashion Examples include the prodution of cereal, paint, and soft drinks Similarities and Differences o Job order Cost system Costs are assigned to each job The products have unique characteristics o Process cost systems Costs are tracked through a series of connected manufacturing  processes or departments The products are uniform or relatively homogenous and  produced in a large quantity o Similarities between systems (pg 97) Same manufacturing cost elements Accumulation costs Flow of costs o Differences
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Exam2acct - Chapter2 17:49:00 Inaccordingtheis

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